Vietnam's real estate developer Novaland seeks creditor waiver on $300 mln offshore bond

Embattled Vietnamese property developer Novaland (HoSE: NVL) is seeking a waiver on upcoming payment obligations for its $300 million international bond package, as the company pushes to restructure its offshore debts.

The developer needs the approval of bondholders representing at least 66% of the total outstanding principal to pass the waiver resolution. The voting deadline for international creditors is set for June 4, 2026, London time.

Novaland noted that if the required threshold is not met by the deadline, the solicitation period may be extended by up to five business days.

Under the proposed restructuring terms, a portion of the debt obligations under the $300 million note will be written off or canceled if the broader restructuring package secures sufficient bondholder approval.

The firm has urged creditors to consult professional financial, tax, and legal advisors before casting their votes on the proposal.

The convertible bonds, which carry a 5.25% annual coupon, were originally issued in 2021 and are listed on the Singapore Exchange (SGX). The notes are slated for final maturity in 2027, with the initial proceeds earmarked for general corporate purposes and business investments.

The waiver request follows a late-April AGM where Novaland shareholders approved a baseline restructuring framework for the offshore notes. The plan outlined a deferral of imminent interest payments and a one-year extension on the ultimate maturity of the bonds.

This year, Novaland plans net revenue of VND22.72 trillion ($862.69 million), more than tripling from the previous year. Net profit is targeted at VND1.85 trillion ($70.26 million), broadly in line with last year’s result.

NVL shares closed at VND15,100 ($0.57) each on Friday.